The Archive · 1937

Foreign Mortgagees

Mr. Moreing asked whether the [Foreign Secretary would represent to the Chinese Government the damage to their financial credit which was [being caused by the failure of Chinese Jeuurts to give prompt redress to for-feign lenders of money on morlsases {to Chinese borrowers in the event of default of payment of the principal Jond Interest, in aecordanes with the terms of mortgage bonds.

Mr. Eden replied that he had Jovidence that the Chinese Govern: ment's credit had been adversely jaftected by the altitude of Chinese courts to foreign mortgagees. He would, however, bear the point in Mr, Eden (o Make Enquiries June 21.

The decision of the Judicial Yuan at Nanking on the sale of mortgaged property at Shanghai, whereby auer tion without judgment is only permitted provided the debtor of a third party raises no question, was the Jsubject of a question in the House of JCommons to-day by Sir John Ward-aw-Milne, Conservative member. for the "Kidderminster division of Wor-

'This proviso, he said, enabled defaulting mortgayors to' postpone realization without just cause. Ssu John asked that steps should be taker to remedy the situation.

'The Foreign Secretary, Mr. An: tony Eden, undertook (0 make. quiries and' {o consider what steps would be appropriate—Reuter.

Text read from the printed page and cleaned; old type leaves the occasional error.

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